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Digg It - Things Banks And Other Lenders Won't Tell You (Part 01) Financial Statements And Financing
One of the things that people who are strapped with credit debt fail to do is accurately account for their financial condition. Many people, more than you would think, don’t know what a financial state
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
ment is or how look at their assets, liabilities, income and expenses to calculate their true financial condition and to present that data according to GAAP standards (generally acceptable accounting pr
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
inciples). Without this knowledge and information you cannot develop a balance sheet and income statement and you will not know with certainty what the status of your financial affairs are or your net
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
worth. If you don’t REALLY know how to arrive at these numbers, you are in the dark about your financial condition.
For those who don’t understand these terms here is a brief explanation:
BALANCE SHE
For those who don’t understand these terms here is a brief explanation:
BALANCE SHE
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
ET-FINDING YOUR NET WORTH
A simple balance sheet is found by taking all the things you own (assets) and assigning a market value to them (things like houses, furniture, futures, jewelry, cars, etc) and
A simple balance sheet is found by taking all the things you own (assets) and assigning a market value to them (things like houses, furniture, futures, jewelry, cars, etc) and
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
adding them up to calculate the asset-side of the equation. Then, for every asset you owe money on, calculate the total debt owed on it and add them up to form the liability-side of the equation. The
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
formula to determine your balance is Assets-Liabilities = Net worth. When assigning value “guesstimation” to the things you own ask yourself how much it would sell for in a yard sale. That’s probably
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
pretty close to what it is worth. I mean, you may value your computer system at one value but how much is it worth if you had to dump it for cash right now? That’s called street valuation.
INCOME STA
INCOME STA
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
TEMENT – TRUE CASH FLOW
A simple income statement is easy to prepare if you have access to your sources of cash flow (weekly paychecks for a given month (use net income for practicality)) and all your
A simple income statement is easy to prepare if you have access to your sources of cash flow (weekly paychecks for a given month (use net income for practicality)) and all your
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
monthly expenses (credit card bills, loans, subscriptions, utility bills, etc.) What you want to do is calculate all your monthly income for the income-side of the equation. Then, add all your monthly
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
bills (amount due) for the month, this will form the expense side of the equation. The formula to determine your monthly income statement is Total Income – Expenses = Net income. Actually, this shows
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
cash flow more then net income because you are calculating income from net income figures. Anyway, the point is this: do you have a positive or negative cash flow each month? If it is negative, obvious
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
ly you have a financial problem and may qualify for a debt consolidation loan.
I have helped a lot of clients get debt consolidation loans over the years, many who had been rejected by banks and other
I have helped a lot of clients get debt consolidation loans over the years, many who had been rejected by banks and other
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
lenders and there were a few reasons why these people could not get their own loans:
1. They did not take the time to understand the economics of their situation before going to see the lender.
2. The
1. They did not take the time to understand the economics of their situation before going to see the lender.
2. The
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
y made a loan request written on the back of a napkin (there is not enough room on a bank application to explain a complex financial situation requiring a consolidation)
3. They did not know how to pr
3. They did not know how to pr
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
epare a professional bank package to impress the lender they understood their financial condition and had a sound plan for recovery.
4. They applied at multiple lenders who rejected them not realizing
4. They applied at multiple lenders who rejected them not realizing
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
that each time they applied for a loan they added another credit inquiry by each lender which each lender could see thereby destroying their chances for a loan.
5. Going to the wrong lender for the loa
5. Going to the wrong lender for the loa
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
n.
6. Not knowing how to communicate with the lender.
The list goes on and on…
The point is this: if you don’t know what you are doing, if you have credit problems, if you don’t have many assets, if
6. Not knowing how to communicate with the lender.
The list goes on and on…
The point is this: if you don’t know what you are doing, if you have credit problems, if you don’t have many assets, if
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
your debts are high, and life sucks, you can probably still get a loan if you know how to communicate with lenders structure the deal. If you don’t, you won’t.
I hope this article helped if you did no
I hope this article helped if you did no
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
t understand these two fundamental financial formulas. It's what you don't know that can hurt you... Things Banks & Other Lenders Won't tell You...
Copyright © 2006 James W. Hart, IV All Rights Reserve
Copyright © 2006 James W. Hart, IV All Rights Reserve
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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